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Purchase of Shares Upon Breach of Contract

Purchase of Shares Upon Breach of Contract

In the event a Party ___1___ breaches any of the provisions of this agreement and where such breach is not ___2___ within 30 days following demand, the other Parties shall be entitled, in ___3___ to their previous shareholdings, to purchase the breaching Party’s shares. In the event only one of the Parties wishes to exercise its purchase rights, such Party shall be entitled but not ___4___ to purchase all of the breaching Party’s shares. Purchase pursuant to this provision shall, however, not ___5___ other remedies as a result of the breach of contract.

Purchase shall take place through ___6___ by the non-breaching Party, within two months from the breach of contract (purchase period), of a written demand for purchase. On the day after the expiration of the purchase period, the breaching Party shall surrender the relevant shares duly endorsed in blank to the Parties demanding purchase, whereupon ownership rights to the shares shall be ___7___ . Where the relevant Parties are ___8___ to agree on the price within one month from the expiration of the purchase period, such price shall be determined pursuant to the ___9___ valuation regulations set forth in this agreement, section 12, subject to a deduction of 20% of the value thus determined. The purchase price for the shares shall be paid in cash within two months from the date on which the value of the shares is finally determined. Interest on the purchase price shall be payable at a rate ___10___ to the discount rate in effect from time to time plus 8 percentage points, commencing on the day on which the shares are surrendered.

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